Executive Compensation

A Calculated Approach to Goal Setting

One of the most challenging tasks for many companies is setting goals for their compensation plans that effectively align executive incentives with shareholder interests. Incorporating statistical analysis into your goal-setting approach can help ensure that goals are challenging but achievable and present payout opportunities that are fair for both executives and shareholders.

Download the report to discover:

  • How to properly balance compensation plans to both incentivize executives and reward shareholders
  • Strategies for using statistical analysis, such as Monte Carlo simulation, in the goal setting process to design a program that strongly correlates incentives with performance expectations
  • Why a properly leveraged program may be designed around payout probabilities, while potential pitfalls include setting “softball” goals, “feast of famine” scenarios, or unbalanced payouts